First green hydrogen plant in Brazil goes into operation by the end of 2022

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On the coast of the Northeast Region of Brazil, the living laboratory that marks the beginning of green hydrogen production in the country at a plant is taking its first steps. The solar panels that will generate renewable energy for the electrolyzer module are being positioned in the Port of Pecém, Ceará, which will house the plant.

“This is a pilot project that will generate green hydrogen on a small scale. But there are future projects aimed at exporting the fuel”, Cayo Moraes, executive manager at EDP, comments in an interview to Portal.

By December 2022, the plant should produce its first H₂ molecule with capacity of generating 250 Nm³/h of the gas. The electrolysis will be carried out in equipment under development made by Hytron, a technology-based company that was born within the State University of Campinas, Unicamp.

The H₂ will be generated at the Pecém thermoelectric plant, operated by EDP, in co-burning with mineral coal. EDP’s initiative in Brazil – it was operates in the country for more than two decades – represents an important step in the energy transition, which seeks to replace fossil fuels with clean sources.

The project has the participation of the Advanced Institute of Technology and Innovation, IATI, in Recife (PE), responsible for the technical validation of the plant. It also counts with the Study Group on the Electric Energy Sector, Gesel, from the Federal University of Rio Janeiro (UFRJ), which is studying the plant’s economic, sectoral and market viability.

“Whatever is validated can be replicated in another process, such as in a cement plant, in a steel mill, among others. We will also study all the links in the gas production chain, business models, strategic partnerships, fuel storage, and produce a roadmap”, Moraes details.

At the end of the project, which runs until 2024, EDP expects to have elements to fill the gaps in relation to the green hydrogen market in the country. “The partnerships we made with IATI and Gesel are also important for this. By 2024, we will know more about boundary conditions, which involve auctions, financing, regulation, public policies. We will have details of the scenario that can serve as a basis for making decisions on how to scale the plant”, Moraes comments about the project estimated at 41.9 million Brazilian reais.

Key location

The installation of the plant in the port of Pecém follows a strategic objective. In February 2021, the site launched a green hydrogen hub in order to become a major producer and exporter of clean fuel. The main target market is Europe, as the port of Rotterdam holds 30% of Pecém’s operations.

The Ceará complex, which is located 60 kilometers away from the state capital Fortaleza, estimates a future production capacity of approximately one million tons of H₂ per year. Part of the gas should be directed to the industrial hub that occupies the port area, which is also planning its energy transition.

“We chose Pecém not only because of the location. Ceará has a large supply of renewable energy – solar and wind –, which ensures that hydrogen generation is green. In addition, it has a good infrastructure to transfer production”, the executive manager of EDP adds.

Worldwide trend

In February 2021, the global EDP group announced the creation of a business unit exclusively focused on green hydrogen, the H2 Business Unit. The idea is to work together with sectors such as the steel, chemical, refinery and cement industries in the development of projects aimed especially at the United States and Europe.

In parallel with the project in Brazil, EDP is testing the technology at the Ribatejo Central unit, in Portugal. The project, which from this year will have an electrolyzer with an installed capacity of 1 MW and 12 MWh of storage capacity, is supported by the European Union and was budgeted at 12.6 million euros.